Monday, September 30, 2019 7:30:24 PM
In order to do a short-sale, a short-seller must first borrow shares from someone who owns them (I.e. a "long").
Putting a good-till-cancelled order on stock shares you wish to hold long-term, and at a price substantially higher than the current price, protects the shares you want to hold long-term from being borrowed by a short seller. (Your broker can't lend them out with this protective order in place.) This then, can help prevent a short-seller from borrowing and USING YOUR SHARES AGAINST YOU.
This protective order will be triggered if the price you set is reached, so for shares you really want to keep long term, the price must be set high enough above the current price so that that is unlikely.
IF YOUR SHARES HAVE ALREADY BEEN BORROWED BY A SHORT-SELLER, PLACING THIS ORDER WILL FORCE THE SHORT-SELLER TO HAVE TO RETURN YOUR STOCK, or "cover the short." To do this, the short-seller must either buy back an equal number of shares to replace what they borrowed from you, or find someone else to borrow from.
REMEMBER, IF you decide to sell the shares you protected in this way, you MUST first cancel this protective order.
IMHO this is one thing longs can do for ourselves.
This FYI was for longs who didn't already know about this. I know many here do. For those who do, I thank you for bearing with the explanation, which also serves as a reminder to all longs to check to see if your shares are protected.
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